Silicon Valley’s initial advantage in LLMs evaporated quickly despite export controls, writes AI expert Gary Marcus.

The tech industry's reaction to AI model DeepSeek R1 has been wild. Pat Gelsinger, for instance, is elated and thinks it will make AI better for everyone.

NVIDIA lost $500 billion of market value in a single day because of DeepSeek.

Global investors dumped tech stocks amid the emergence of a low-cost Chinese AI model, leaving Nvidia with a record one-day loss for any company on Wall Street.

Chinese AI chatbot DeepSeek has displaced OpenAI’s ChatGPT as the most downloaded app on the Apple App store and the market is panicking. Stocks for major AI connected companies like NVIDIA fell on Monday morning following the news.

DeepSeek’s R1 model has rattled the industry and slashed Nvidia’s stock. But for OpenAI, Anthropic, and Meta, there is an ironic twist.

Nvidia is the gold standard and leading provider of the graphics processing units (GPUs) used to train and run AI systems. The company is believed to control as much as 98% of the data center GPU market, according to semiconductor analyst firm TechInsights. If AI models can be trained on lower-cost, inferior chips, Nvidia has a lot to lose.

DeepSeek topped the Apple App Store chart and sparked fears the Chinese company was quickly catching up with OpenAI's ChatGPT while costing far less.

Barrett Woodside, co-founder of the San Francisco AI hardware company Positron, said he and his colleagues have been abuzz about DeepSeek.

According to a report, China’s Deepseek released a large language model (LLM) in December 2024 which performs the same as OpenAI and other AI systems despite the continued restrictions by the U.S. on chip imports.

A new AI model from Chinese company DeepSeek is hitting the stock of AI boom darling Nvidia. DeepSeek can run on less-advanced chips, and investors seem to be questioning whether demand for Nvidia's high-end chips is overdone. The chipmaker's shares took a beating in premarket trading, dropping 13%.